Are you an “Executive” employee?

If you are properly classified as an “executive employee” then you are an exempt employee and your employer does have to pay you overtime. Not surprisingly, employers often call workers “executive employees” to avoid paying them overtime, even when the law does not permit them to do so. Are you properly classified as an executive employee? How do you find out?

Executive Exemption Basics

In order to be exempt from overtime pay under the executive exemption, you must be paid a salary of at least $800/week for employers with 25 or less employees and $840/week for employers with 26 or more employees (for full-time employment) and:

Manage the entire company or a recognized department/subdivision, and

Regularly direct the work of at least 2 or more subordinates in your department, and

Have authority to hire or fire, and

Exercise independent business judgment, and

Spend more than 50% of your time doing 1-4.

As with most legal tests, this one has its exceptions that are too numerous to list here. Again, the employee must customarily and regularly exercise discretionary power and independent judgment.

As with any of the exemptions, having a fancy job title does not reflect actual job duties and therefore, is of no assistance in determining exempt or nonexempt status. The actual determination of exempt or nonexempt status must be based on the nature of the actual work (i.e. the job duties) performed by the employee.

Again, there are many exceptions. If you have any questions as to whether you are misclassified as an executive employee, contact an experienced employment lawyer today. You need to get legal help in this complicated matter.

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Please note that nothing presented on this website is legal advice. Every situation and every client's legal matter is different and this website is merely meant to provide information to the public. Nor does this website create an attorney-client relationship - such a relationship has not been formed until a signed fee agreement has been made. If you want legal advice or want to know if you have suffered a legal wrong in the workplace, contact our office.